SE Asia Stocks-Stumble as ECB disappoints; Singapore falls most in 1 month
By Krishna V Kurup Sept 9 (Reuters) - Most Southeast Asian stocks fell on Friday, tracking broader Asian markets, on uncertainty over the prospect of further easing from the European Central Bank while sentiment was also hit following reports North Korea had conducted a nuclear test. ECB President Mario Draghi, speaking after the central bank kept its policy on hold as expected, said the bank will study policy options to ensure it can pursue its unprecedented money-printing programme but did not hint at the anticipated extension of its asset purchases, maintaining the March end-date in an unexpectedly balanced message. Markets are reacting as they were expecting signals of further easing from the ECB, while lowering of growth and inflation forecasts for the next two years further dampened sentiment, said Victor Felix, an analyst with Manila-based AB Capital Securities Inc, adding that the downtrend would continue next week. Indonesian shares fell 1 percent to their lowest in nearly 4 weeks, weighed down by financials and consumer staples. Bank Rakyat Indonesia (Persero) Tbk PT fell 1.5 percent, while Unilever Indonesia Tbk PT dropped nearly 1 percent. "Expect JCI (Jakarta Composite Index) to trend lower as ECB chief Draghi downplayed additional stimulus into the system," Taye Shim, an analyst with Daewoo Securities Indonesia, said in a note. "However, we see limited pressure to the downside given oil price rallied overnight." Oil prices pulled back a little after surging more than 4 percent on Thursday to two-week highs on surprisingly large drawdown in U.S. crude stocks. Singapore declined as much as 1 percent in its sharpest fall since Aug. 3, with financials and telecoms being the biggest drag. Singapore Telecommunications Ltd fell 1.7 percent, while DBS Group Holdings Ltd lost 1.3 percent. Malaysian shares were marginally lower, with financials and utilities among the biggest losers. Genting Bhd fell 1.4 percent, while Tenaga Nasional Bhd lost 1.1 percent. Industrial production grew 4.1 percent in July compared with a year earlier, government data released on Friday showed. Bucking the broader Asian trend, Vietnamese stocks rose 0.5 percent, led by utilities and financials. Vietcombank gained 6.3 percent, while Petrovietnam Gas Joint Stock Corp was up 1.6 percent. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change at 0420 GMT Market Current Prev close Pct Move Singapore 2870.16 2894.48 -0.84 Bangkok 1456.31 1455.38 0.06 Manila 7628.83 7667.07 -0.50 Jakarta 5317.424 5371.078 -1.00 Kuala Lumpur 1685.56 1691.38 -0.34 Ho Chi Minh 669.33 666.07 0.49 Change on year Market Current End 2015 Pct Move Singapore 2870.16 2882.73 -0.44 Bangkok 1456.31 1288.02 13.07 Manila 7628.83 6952.08 9.73 Jakarta 5317.424 4593.008 15.77 Kuala Lumpur 1685.56 1692.51 -0.41 Ho Chi Minh 669.33 579.03 15.60 (Reporting by Krishna V Kurup in Bengaluru; Additional reporting by Sindhu Chandrasekaran; Editing by Subhranshu Sahu)
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